OTTAWA – The federal government must immediately stop the sale of Nortel’s assets to the Swedish company Ericsson, says New Democrat Leader Jack Layton.

“Canadian taxpayers have invested billions in Nortel and only a government without a vision for Canada’s next economy would allow the sale of the company’s most valuable assets to foreign interests. Those assets are important for Canada to maintain its leadership position in the next economy. We cannot afford to give up the strategic leverage and technological advantage they represent.”

New Democrat Industry Critic Brian Masse says the Conservative government must use the power of the Investment Canada Act to immediately conduct a thorough review of all aspects of this sale.

“The Conservative government is sitting on its hands while Nortel's wireless assets and patents are taken over by foreign interests,” says Masse. “These assets are of national strategic and economic importance, and that is why the world’s leading cell phone companies were bidding for them.”

Masse adds that on top of the loss of billions in taxpayer dollars that went into developing these technologies, the deal could further endanger the pensions of Nortel’s Canadian employees. Nortel’s Canadian pension funds are facing seizure by the U.S. government.

In 2008, under pressure from the New Democrats, lead by former MP Peggy Nash, the Federal government rejected a foreign takeover for the first time in 23 years, in that case the sale of MacDonald, Dettwiler and Associates Ltd. (MDA) to U.S. arms manufacturer Alliant Techsystems (ATK).

“The government has the means via the Investment Canada Act to stop this takeover of a key Canadian asset. There is no evidence that the sale of this Canadian gem to a Swedish corporation is in the national strategic and economic interest of Canadians,” says Layton.